How Did Ether ETFs Do on Day One?
After months of rejections and delays by the SEC, exchange-traded funds based on Ether’s spot price finally launched in the U.S. on July 23.
Markets had long regarded their debut as something of an inevitability, meaning this event had already been priced in by investors.
A grand total of nine ETFs tracking the world’s second largest cryptocurrency were available for investors to choose from, with cut-throat competition when it came to cost.
That is, with the exception of the Grayscale Ethereum Trust. This long-established vehicle is now being converted into an ETF, and commands pretty eye-watering fees of 2.5%.
Given this is substantially more than rivals, we’re already beginning to see large outflows from Grayscale as pundits move to funds launched by BlackRock and Fidelity.
Bitcoin ETFs have enjoyed a barn-storming performance over the past six months — and data from SoSo Value shows these products have attracted cumulative total net inflows of $17.46 billion since January.
But in the run-up to their Ether counterparts launching, some analysts had sought to manage expectations — warning that there might not be as much appetite here.
Wintermute predicted that annualized inflows across ETH ETFs for the whole first year may be as low as $4 billion, contributing to a price increase of 18%.
Some of the challenges standing in Ether’s way include a lack of brand recognition when compared with Bitcoin.
And given these ETFs fail to offer staking rewards — referring to the process of locking the cryptocurrency away and receiving compensation for helping secure the network — demand might be pretty tepid.
Despite the gloomy forecasts, these new exchange-traded funds did end up delivering a pretty robust performance on
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